At the end of the monthJune.December.
in per Cent.A.B.A.B.
190787.8944.6376.2737.82
1908114.3946.90146.3558.33
1909154.6049.5497.6234.36

This bank, like others in Salvador, does not disclose the character of its investments, and it is therefore impossible to pronounce any opinion of its actual financial status. It is always desirable to know something regarding the character of the paper which a bank has in hand, and it is precisely this knowledge which is withheld, and by many British companies also. The omission to provide it is in no way the fault of the bank, be it observed, but of the custom which controls its actions. In Costa Rica alone, among the Central American States, is the practice general among the banks to publish in the balance-sheets some particulars of the commercial paper carried, and this is taken into account like every other asset and inventoried. In Costa Rica, also, all the issuing banks have their books inspected once a month by Government officials, and a certificate of solvency is presented to and published by them.

The National Bank of Salvador (Banco Nacional) was founded in 1907 with a capital of $1,000,000 (silver pesos). Of this amount one-half has been paid up. The following statement of account for the first three years of its existence will be useful:

1907.1908.First Half
of 1909.
Total earnings18,173.7438,786.8526,175.36
Deductions3,000.008,138.356,175.36
Net Profits15,173.7430,648.5020,000.00
Increase in 1908, 15,442.26

The balance-sheet shows the following accounts:

1907.1908.First Half
of 1909.
Negotiable paper568,727675,176427,751
Loans on current accounts546,331777,847724,734
Cash264,374634,803449,207
Notes in circulation90,908517,153426,732
Credit and deposits at sight211,361365,333302,870
Time obligations223,905502,174430,682

The metallic reserve account stood as follows:

At the End of the Month,June.December.
in per Cent.A.B.A.B.
1907354·3239·36262·9060·05
1908115·9360·10126·4742·70
1909105·2638·50

The steady increase shown is somewhat remarkable, and the distribution of profits, considering the comparatively recent establishment of this bank, hardly less so. This distribution, after making all the necessary provisions, stood as follows: